On 8 May 2012, the former government announced as part of the 2012-13 Budget that it would amend the capital gains tax (CGT) scrip for scrip roll-over measure. Following consultation on the package of announced but unenacted measures, the current government announced on 14 December 2013 that it would proceed with this measure.

These changes are to have effect from 7.30pm (AEST) on 8 May 2012.

The changes are designed to address deficiencies in the existing integrity provisions identified in Commissioner of Taxation v AXA Asia Pacific Holdings Ltd (2010) FCAFC 134 (the AXA case). As announced, the measure would remove tax minimisation opportunities in the CGT scrip for scrip roll-over provisions that were highlighted by the AXA case, and would prevent taxpayers adopting arrangements that circumvent the integrity provisions and defer their capital gain indefinitely. The measure would also remove other weaknesses in the roll-over provisions.

The exposure draft External Linkof the legislation and explanatory memorandum of the proposed law were released for consultation on 29 April 2015 and submissions closed on 20 May 2015.

Legislation to implement this measure received royal assent on 13 October 2015.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.